INSTRUCTIONS:
1)
2)
3)
4)
5)
Each student shall answer the sets assigned to him/her. Answers only.
Send the answers to the class president.
The class president shall compile the answers in one PDF file. Filename is SUBJECT<space>MIDTERM<space>EXAM <space>YEAR &
SECTION (e.g. FAR MIDTERM EXAM 1B.pdf).
The class president shall send the PDF file (compiled answers) to me thru messenger. Answers of all students per section must be in
the file. Incomplete answers will not be considered.
Deadline is on or before July 3, 2020 (Friday), 11:59 PM. (NOTE: If both exams are submitted on or before June 15 (MONDAY), 11:59
PM — Plus 10 points).
STUDENTS
SETS ASSIGNED
1.
ABULON, RENALYN COMIA
SET 1 ; SET 36
2.
ADEA, LARRY JAMES CALLO
SET 2 ; SET 36
3.
ALBERTO, MARIEL BARAQUIEL
SET 3 ; SET 36
4.
ALVAREZ, KENNETH CAPANGPANGAN
SET 4 ; SET 36
5.
ASEOCHE, CHARLES RUSSEL
SET 5 ; SET 36
6.
ASTEJADA, SOFIA ANNE MARIE LLAMOSO
SET 6 ; SET 36
7.
BENALLA, ANGELICA MAE ESGUERRA
SET 7 ; SET 36
8.
COSICO, ALLYSA MAY MANZANO
SET 8 ; SET 36
9.
CUATERNO, JOHN PHILIP LACAMORA
SET 9 ; SET 36
10. DIME, MA. CRISTINE JOYCE MENDOZA
SET 10 ; SET 36
11. EBREO, MARIA ANGELA FRANCESCA BASTE
SET 11 ; SET 36
12. ENGRACIA, ANGELOU BALBON
SET 12 ; SET 36
13. ESPLANA, CAMILLE YASOÑA
SET 13 ; SET 36
14. FLORES, VONN DERRIC PAZ
SET 14 ; SET 36
15. GUALBERTO, JESSICA MAE PUIG
SET 15 ; SET 36
16. HERCE, PAULO ENDAYA
SET 16 ; SET 36
17. ILAGAN, JHORELLE LYNN OLGADO
SET 17 ; SET 36
18. JAEN, KRIZ-ANNE MORILLA
SET 18 ; SET 36
19. LA TORRE, LOVELY JANE LIBRANDA
SET 19 ; SET 36
20. LAUREL, LHIEANN JOY IGNACIO
SET 20 ; SET 36
21. MACARO, REGINE MABUTI
SET 21 ; SET 36
22. MADRIGAL, MARIA GENESIS
SET 22 ; SET 36
23. MALDIA, PRINCESS EUNICE DEMAFELIX
SET 23 ; SET 36
24. MANGUIAT, CINDERELLA SARMIENTO
SET 24 ; SET 36
25. MONREAL, ANGEL MAE ALVAREZ
SET 25 ; SET 36
26. NADAL, MARY JOY RABIN
SET 26 ; SET 36
27. OLAGUER, JOHN CARLO FAJUTAGANA
SET 27 ; SET 36
28. PASAHOL, JADIELYN VILLANUEVA
SET 28; SET 36
29. PEREÑA, ERIKA JANE SICUHAN
SET 29 ; SET 36
30. PORCINCULA, APRIL ROSE DUMARAOS
SET 30 ; SET 36
31. REVILLA, MA. NADINE DE LEON
SET 31 ; SET 36
32. SAN JOSE, JOYCE VERON AN
SET 32 ; SET 36
33. SANTOS, JANNA MAE LANGREO
SET 33 ; SET 36
34. SANTOS, BERNICE ROSE SANTOS
SET 34 ; SET 36
35. VALDELLON, JUSTINE ROSE BAET
SET 35 ; SET 36
SET1
PROBLEM 1
On October 1, 2019, ABC Company received nine months of rent in advance beginning on that date for a total amount of P81, 000. ABC
Company’s reporting period ends on November 30, 2019.
1) How much is the unearned revenue at the end of fiscal year 2019?
2) Prepare the adjusting entries on November 30,2019 assuming ABC company records advanced receipt of unearned revenue
using liability method.
PROBLEM2
DEF Company had a beginning total assets of P650,000 and beginning total liabilities of P150,000. During 2019, the owner invested cash of
P150,000 and withdrew cash amounting to P460,000. Liabilities at the end of 2018 amounting to P100,000 were paid during 2019. DEF
incurred expenses of P300,000 resulting to an ending total assets and total liabilities of P900,000 and P550,000 respectively.
1) How much is the additional liabilities during 2019?
2) How much is the revenue earned during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
December 1, 2019
October 12, 2019
LIST PRICE
450,000
820,000
TRADE DISCOUNT
5%,2%,1%
30%,20%,10%
CREDIT TERMS
2/10, n/60
2/10,1/15,n/30
DATE PAID
January 1,2020
October 27,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P200,000 on account. The
merchandise is subject to a trade discount of 20%,10%,5%, with credit terms of 2/10/EOM, n/30.
a)
b)
Prepare the entry to record purchase (ABC Company’s POV) of merchandise using each of the following methods.
i.
Gross method
ii.
Net method
Prepare the entry to record payment (ABC Company’s POV) of merchandise assuming merchandise is fully paid on February
20, 2019, using each of the following methods.
i)
Gross method
ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 15%,5% with credit terms 2/10,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 24, 2019.
Prepare the entries (Buyer’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 24,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET2
PROBLEM 1
Entity A has a total accounts receivable of P900,000 as of December 31, 2018. At the end of 2018, it was estimated that 94% of accounts
receivable is collectible. On December 31, 2019, the balance of accounts receivable is P1,550,000. At the end of 2019, it was estimated
that 5% of the outstanding accounts receivable is uncollectible.
1) How much is the uncollectible accounts expense during the period ended December 31, 2019?
2) Prepare the adjusting entry on December 31, 2018.
PROBLEM2
ABC Company had a beginning total assets of P2,000,000 and beginning total liabilities of P550,000. During 2019, the owner invested cash
of P600,000 and withdrew cash amounting to P210,000. Additional liabilities during 2019 amounted to P700,000 while liabilities at the end of
2018 amounting to P400,000 were paid during 2019. ABC incurred expenses of P700,000 resulting to an ending total assets of P2,200,000.
a)
b)
How much is the net income (net loss) during 2019?
How much is the revenue earned during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
August 1, 2019
May 12, 2019
LIST PRICE
800,000
1,030,000
TRADE DISCOUNT
10%,20%,30%
4%,2%,1%
CREDIT TERMS
1/10/EOM, n/60
3/10,2/15,n/30
DATE PAID
September 11,2019
May 27,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P300,000 on account. The
merchandise is subject to a trade discount of 1%,2%,4% with credit terms of 2/10/EOM, n/30.
a)
b)
Prepare the entry to record purchase (ABC Company’s POV) of merchandise using each of the following methods.
i.
Gross method
ii.
Net method
Prepare the entry to record payment (ABC Company’s POV) of merchandise assuming merchandise is fully paid on March
10, 2019, using each of the following methods.
i)
Gross method
ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 20%,5% with credit terms 3/10,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 20, 2019.
Prepare the entries (Seller’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 20,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET3
PROBLEM 1
ABC Company collected P20,000 in interest during 2019. ABC Company showed P2,000 in interest receivable on its December 31, 2019
statement of financial position and P7,000 on December 31, 2018.
1)
2)
How much is the interest revenue reported on ABC’s statement of comprehensive income for 2019?
Prepare the adjusting entry on December 31, 2019.
PROBLEM2
DEF Company had a beginning total assets of P5,000,000 and beginning total liabilities of P3,500,000. During 2019, the owner invested cash
of P1,000,000 and withdrew cash amounting to P500,000. Additional liabilities during 2019 amounted to P1,000,000. DEF incurred expenses of
P3,000,000 resulting to an ending total assets and liabilities of P6,000,000 and P2,500,000 respectively.
a)
b)
How much is the amount of liabilities paid during 2019?
How much is the revenue earned during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
December 12, 2019
October 1, 2019
LIST PRICE
400,000
900,000
TRADE DISCOUNT
5%,2%,1%
25%,15%
CREDIT TERMS
4/EOM, n/60
2/10,1/15,n/30
DATE PAID
January 10,2020
October 11,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 5%,2%,1% with credit terms of 4/EOM, n/60.
a)
b)
Prepare the entry to record purchase (ABC Company’s POV) of merchandise using each of the following methods.
i.
Gross method
ii.
Net method
Prepare the entry to record payment (ABC Company’s POV) of merchandise assuming merchandise is fully paid on February
28, 2019, using each of the following methods.
i)
Gross method
ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 4/EOM, n/60. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on July 13, 2019.
Prepare the entries (Seller’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) July 13,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET4
PROBLEM 1
ABC Company received a 10% P2,000,000, one-year, notes receivable from a customer on November 30, 2019. Both the principal and
interest on the note are due on December 1,2020.
1)
2)
How much is the interest receivable on December 31, 2019?
Prepare the adjusting entry on December 31, 2019.
PROBLEM2
DEF Company had beginning balance of total assets and liabilities of P9,650,000 and P5,550,000 respectively. During 2019, the owner
invested cash of P4,500,000 and withdrew cash amounting to P1,900,000. Additional liabilities during 2019 amounted to P5,000,000 while
liabilities at the end of 2018 amounting to P4,550,000 were paid during 2019. DEF had ending total assets of P10,000,000. DEF earned income
of P8,000,000 during the current year.
a)
b)
How much is the net income (net loss) during 2019?
How much is the amount of expenses incurred during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
March 24, 2019
October 1, 2019
LIST PRICE
400,000
9,000,000
TRADE DISCOUNT
25%,15%
10%,20%,30%
CREDIT TERMS
2/10,1/15,n/30
2/10/EOM, n/60
DATE PAID
April 8,2019
October 11,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 10%,20%,30% with credit terms of 4/EOM, n/60.
a)
b)
Prepare the entry to record sale (DEF Company’s POV) of merchandise using each of the following methods.
i)
Gross method
ii)
Net method
Prepare the entry to record receipt of payment (DEF Company’s POV) of merchandise assuming payment was received on
February 20, 2019, using each of the following methods.
(i)
Gross method
(ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P500,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 2/10,1/15,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 24, 2019.
Prepare the entries (Buyer’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 24,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET5
PROBLEM 1
A law firm began December with Office Supplies of P50,000. During the month, the firm purchased supplies of P20,000. At December 31,
supplies on hand totalled P33,000.
1) How much is the supplies expense on for the month of December?
2) Prepare the adjusting entry on December 31, 2019 using the asset method.
PROBLEM2
ENTITY A had beginning balance of total assets and liabilities of P800,000 and P200,000 respectively. During 2019, the owner invested cash
of P100,000 and withdrew cash amounting to P200,000. Additional liabilities during 2019 amounted to P250,000 while liabilities at the end of
2018 amounting to P50,000 were paid during 2019. ENTITY A had ending total assets of P800,000. During 2019, ENTITY A earned income of
P600,000.
a)
b)
How much is the net income (net loss) during 2019?
How much is the amount of expenses incurred during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
March 14, 2019
May 29, 2019
LIST PRICE
4,000,000
8,000,000
TRADE DISCOUNT
10%,20%,30%
25%,15%
CREDIT TERMS
2/10,1/15,n/30
2/10, n/60
DATE PAID
March 20,2019
June 9,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 1%,2%,3% with credit terms of 2/10, n/60.
a)
b)
Prepare the entry to record sale (DEF Company’s POV) of merchandise using each of the following methods.
i)
Gross method
ii)
Net method
Prepare the entry to record receipt of payment (DEF Company’s POV) of merchandise assuming payment was received on
February 20, 2019, using each of the following methods.
(i)
Gross method
(ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P500,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 2/10,1/15,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 25, 2019.
Prepare the entries (Buyer’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 25,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET6
PROBLEM 1
DEF Company acquired an office equipment on August 1, 2019 for P2,000,000. The office equipment has estimated useful life of 8 years.
1) How much is the depreciation expense for the period ended December 31, 2019?
2) Prepare the adjusting entry on December 31, 2019.
PROBLEM2
ENTIY A had a beginning total assets of P3,700,000 and beginning total liabilities of P1,200,000. During 2019, the owner withdrew cash
amounting to P370,000. Additional liabilities during 2019 amounted to P600,000 while P800,000 liabilities at the end of 2018 were paid during
2019. ENTITY A earned income of P950,000 and incurred expenses of P650,000. At the end of 2019, ending total equity amounted to
P4,000,000.
a)
b)
What is the amount of investment by owner during 2019?
What is the ending balance of total assets?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
November 1, 2019
November 12, 2019
LIST PRICE
450,000
820,000
TRADE DISCOUNT
5%,2%,1%
30%,20%,10%
CREDIT TERMS
2/10, n/60
2/10,1/15,n/30
DATE PAID
December 1,2019
November 27,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P200,000 on account. The
merchandise is subject to a trade discount of 20%,10%,5%, with credit terms of 2/10/EOM, n/30.
a)
b)
Prepare the entry to record sale (DEF Company’s POV) of merchandise using each of the following methods.
i)
Gross method
ii)
Net method
Prepare the entry to record receipt of payment (DEF Company’s POV) of merchandise assuming payment was received on
February 20, 2019, using each of the following methods.
(i)
Gross method
(ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 15%,5% with credit terms 2/10,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 24, 2019.
Prepare the entries (Seller’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 24,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET7
PROBLEM 1
ABC Company received a 10% P3,000,000, one-year, notes receivable from a customer on November 30, 2019. Both the principal and
interest on the note are due on December 1,2020.
1)
2)
How much is the interest receivable on December 31, 2019?
Prepare the adjusting entry on December 31, 2019.
PROBLEM2
ENTIY A had a beginning total assets of P3,500,000 and beginning total liabilities of P1,000,000. During 2019, the owner invested cash
amounting to P200,000. Additional liabilities during 2019 amounted to P600,000 while P800,000 liabilities at the end of 2018 were paid during
2019. ENTITY A earned income of P700,000 and incurred expenses of P750,000. At the end of 2019, ending total equity amounted to
P2,000,000.
a)
b)
What is the amount of permanent withdrawal by owner during 2019?
What is the ending balance of total assets?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
July 1, 2019
June 12, 2019
LIST PRICE
800,000
1,030,000
TRADE DISCOUNT
10%,20%,30%
4%,2%,1%
CREDIT TERMS
1/10/EOM, n/60
3/10,2/15,n/30
DATE PAID
August 11,2019
June 27,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P300,000 on account. The
merchandise is subject to a trade discount of 1%,2%,4% with credit terms of 2/10/EOM, n/30.
a)
b)
Prepare the entry to record sale (DEF Company’s POV) of merchandise using each of the following methods.
i)
Gross method
ii)
Net method
Prepare the entry to record receipt of payment (DEF Company’s POV) of merchandise assuming payment was received on
March 10, 2019, using each of the following methods.
(i)
Gross method
(ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 20%,5% with credit terms 3/10,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 20, 2019.
Prepare the entries (Buyer’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 20,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET8
PROBLEM 1
ABC Company has a total accounts receivable of P3,000,000 as of December 31, 2018. At the end of 2018, it was estimated that 95% of
accounts receivable is collectible. On December 31, 2019, the balance of accounts receivable is P5,550,000. At the end of 2019, it was
estimated that 6% of the outstanding accounts receivable is uncollectible.
1) How much is the uncollectible accounts expense during the period ended December 31, 2019?
2) Prepare the adjusting entry on December 31, 2018.
PROBLEM2
DEF Company had a beginning total assets of P550,000 and beginning total liabilities of P50,000. During 2019, the owner invested cash of
P150,000 and withdrew cash amounting to P460,000. Liabilities at the end of 2018 amounting to P10,000 were paid during 2019. DEF incurred
expenses of P300,000 resulting to an ending total assets and total liabilities of P900,000 and P550,000 respectively.
1) How much is the additional liabilities during 2019?
2) How much is the revenue earned during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
July 12, 2019
January 1, 2019
LIST PRICE
400,000
900,000
TRADE DISCOUNT
5%,2%,1%
25%,15%
CREDIT TERMS
4/EOM, n/60
2/10,1/15,n/30
DATE PAID
August 10,2019
January 11,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 5%,2%,1% with credit terms of 4/EOM, n/60.
a)
b)
Prepare the entry to record sale (DEF Company’s POV) of merchandise using each of the following methods.
i)
Gross method
ii)
Net method
Prepare the entry to record receipt of payment (DEF Company’s POV) of merchandise assuming payment was received on
February 28, 2019, using each of the following methods.
(i)
Gross method
(ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 4/EOM, n/60. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on July 13, 2019.
Prepare the entries (Buyer’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) July 13,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET9
PROBLEM 1
ABC Company collected P100,000 in interest during 2019. ABC Company showed P70,000 in interest receivable on its December 31, 2019
statement of financial position and P10,000 on December 31, 2018.
1)
2)
How much is the interest revenue reported on ABC’s statement of comprehensive income for 2019?
Prepare the adjusting entry on December 31, 2019.
PROBLEM2
ENTIY A had a beginning total assets of P700,000 and beginning total liabilities of P200,000. During 2019, the owner withdrew cash
amounting to P20,000. Additional liabilities during 2019 amounted to P100,000 while P10,000 liabilities at the end of 2018 were paid during
2019. ENTITY A earned income of P200,000 and incurred expenses of P250,000. At the end of 2019, ending total equity amounted to
P500,000.
a)
b)
What is the amount of investment by owner during 2019?
What is the ending balance of total assets?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
May 24, 2019
September 2, 2019
LIST PRICE
400,000
9,000,000
TRADE DISCOUNT
25%,15%
10%,20%,30%
CREDIT TERMS
2/10,1/15,n/30
2/10/EOM, n/60
DATE PAID
June 8,2019
September 11,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 10%,20%,30% with credit terms of 4/EOM, n/60.
a)
b)
Prepare the entry to record purchase (ABC Company’s POV) of merchandise using each of the following methods.
i.
Gross method
ii.
Net method
Prepare the entry to record payment (ABC Company’s POV) of merchandise assuming merchandise is fully paid on February
20, 2019, using each of the following methods.
i)
Gross method
ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P500,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 2/10,1/15,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 24, 2019.
Prepare the entries (Seller’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 24,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET10
PROBLEM 1
On September 1, 2019, ABC Company received nine months of rent in advance beginning on that date for a total amount of P81, 000.
ABC Company’s reporting period ends on November 30, 2019.
1) How much is the unearned revenue at the end of fiscal year 2019?
2) Prepare the adjusting entries on November 30,2019 assuming ABC company records advanced receipt of unearned revenue
using liability method.
PROBLEM2
ENTIY A had a beginning total assets of P3,500,000 and beginning total liabilities of P1,000,000. During 2019, the owner invested cash
amounting to P200,000. Additional liabilities during 2019 amounted to P600,000 while P800,000 liabilities at the end of 2018 were paid during
2019. ENTITY A earned income of P800,000 and incurred expenses of P750,000. At the end of 2019, ending total equity amounted to
P2,000,000.
a)
b)
What is the amount of permanent withdrawal by owner during 2019?
What is the ending balance of total assets?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
May 14, 2019
July 29, 2019
LIST PRICE
4,000,000
8,000,000
TRADE DISCOUNT
10%,20%,30%
25%,15%
CREDIT TERMS
2/10,1/15,n/30
2/10, n/60
DATE PAID
May 20,2019
August 9,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 1%,2%,3% with credit terms of 2/10, n/60.
a)
b)
Prepare the entry to record purchase (ABC Company’s POV) of merchandise using each of the following methods.
i.
Gross method
ii.
Net method
Prepare the entry to record payment (ABC Company’s POV) of merchandise assuming merchandise is fully paid on February
20, 2019, using each of the following methods.
i)
Gross method
ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P500,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 2/10,1/15,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 25, 2019.
Prepare the entries (Seller’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 25,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET 11
PROBLEM 1
DEF Company acquired an office equipment on August 1, 2019 for P2,000,000. The office equipment has estimated useful life of 8 years.
1) How much is the depreciation expense for the period ended December 31, 2019?
2) Prepare the adjusting entry on December 31, 2019.
PROBLEM2
ENTIY A had a beginning total assets of P3,500,000 and beginning total liabilities of P1,000,000. During 2019, the owner invested cash
amounting to P200,000. Additional liabilities during 2019 amounted to P600,000 while P800,000 liabilities at the end of 2018 were paid during
2019. ENTITY A earned income of P700,000 and incurred expenses of P750,000. At the end of 2019, ending total equity amounted to
P2,000,000.
a)
b)
What is the amount of permanent withdrawal by owner during 2019?
What is the ending balance of total assets?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
July 12, 2019
January 1, 2019
LIST PRICE
400,000
900,000
TRADE DISCOUNT
5%,2%,1%
25%,15%
CREDIT TERMS
4/EOM, n/60
2/10,1/15,n/30
DATE PAID
August 10,2019
January 11,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 10%,20%,30% with credit terms of 4/EOM, n/60.
a)
b)
Prepare the entry to record purchase (ABC Company’s POV) of merchandise using each of the following methods.
i.
Gross method
ii.
Net method
Prepare the entry to record payment (ABC Company’s POV) of merchandise assuming merchandise is fully paid on February
20, 2019, using each of the following methods.
i)
Gross method
ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P500,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 2/10,1/15,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 25, 2019.
Prepare the entries (Seller’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 25,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET12
PROBLEM 1
ABC Company received a 10% P3,000,000, one-year, notes receivable from a customer on November 30, 2019. Both the principal and
interest on the note are due on December 1,2020.
1)
2)
How much is the interest receivable on December 31, 2019?
Prepare the adjusting entry on December 31, 2019.
PROBLEM2
DEF Company had a beginning total assets of P550,000 and beginning total liabilities of P50,000. During 2019, the owner invested cash of
P150,000 and withdrew cash amounting to P460,000. Liabilities at the end of 2018 amounting to P10,000 were paid during 2019. DEF incurred
expenses of P300,000 resulting to an ending total assets and total liabilities of P900,000 and P550,000 respectively.
1) How much is the additional liabilities during 2019?
2) How much is the revenue earned during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
May 24, 2019
September 2, 2019
LIST PRICE
400,000
9,000,000
TRADE DISCOUNT
25%,15%
10%,20%,30%
CREDIT TERMS
2/10,1/15,n/30
2/10/EOM, n/60
DATE PAID
June 8,2019
September 11,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 1%,2%,3% with credit terms of 2/10, n/60.
a)
b)
Prepare the entry to record purchase (ABC Company’s POV) of merchandise using each of the following methods.
i.
Gross method
ii.
Net method
Prepare the entry to record payment (ABC Company’s POV) of merchandise assuming merchandise is fully paid on February
20, 2019, using each of the following methods.
i)
Gross method
ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 15%,5% with credit terms 2/10,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 24, 2019.
Prepare the entries (Buyer’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 24,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET 13
PROBLEM 1
ABC Company has a total accounts receivable of P3,000,000 as of December 31, 2018. At the end of 2018, it was estimated that 95% of
accounts receivable is collectible. On December 31, 2019, the balance of accounts receivable is P5,550,000. At the end of 2019, it was
estimated that 6% of the outstanding accounts receivable is uncollectible.
1) How much is the uncollectible accounts expense during the period ended December 31, 2019?
2) Prepare the adjusting entry on December 31, 2019.
PROBLEM2
ENTIY A had a beginning total assets of P700,000 and beginning total liabilities of P200,000. During 2019, the owner withdrew cash
amounting to P20,000. Additional liabilities during 2019 amounted to P100,000 while P10,000 liabilities at the end of 2018 were paid during
2019. ENTITY A earned income of P200,000 and incurred expenses of P250,000. At the end of 2019, ending total equity amounted to
P500,000.
a)
b)
What is the amount of investment by owner during 2019?
What is the ending balance of total assets?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
May 14, 2019
July 29, 2019
LIST PRICE
4,000,000
8,000,000
TRADE DISCOUNT
10%,20%,30%
25%,15%
CREDIT TERMS
2/10,1/15,n/30
2/10, n/60
DATE PAID
May 20,2019
August 9,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P200,000 on account. The
merchandise is subject to a trade discount of 20%,10%,5%, with credit terms of 2/10/EOM, n/30.
a)
b)
Prepare the entry to record purchase (ABC Company’s POV) of merchandise using each of the following methods.
i.
Gross method
ii.
Net method
Prepare the entry to record payment (ABC Company’s POV) of merchandise assuming merchandise is fully paid on February
20, 2019, using each of the following methods.
i)
Gross method
ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 20%,5% with credit terms 3/10,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 20, 2019.
Prepare the entries (Seller’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 20,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET 14
PROBLEM 1
ABC Company collected P100,000 in interest during 2019. ABC Company showed P70,000 in interest receivable on its December 31, 2019
statement of financial position and P10,000 on December 31, 2018.
1)
2)
How much is the interest revenue reported on ABC’s statement of comprehensive income for 2019?
Prepare the adjusting entry on December 31, 2019.
PROBLEM2
ENTIY A had a beginning total assets of P3,500,000 and beginning total liabilities of P1,000,000. During 2019, the owner invested cash
amounting to P200,000. Additional liabilities during 2019 amounted to P600,000 while P800,000 liabilities at the end of 2018 were paid during
2019. ENTITY A earned income of P800,000 and incurred expenses of P750,000. At the end of 2019, ending total equity amounted to
P2,000,000.
a)
b)
What is the amount of permanent withdrawal by owner during 2019?
What is the ending balance of total assets?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
December 1, 2019
October 12, 2019
LIST PRICE
450,000
820,000
TRADE DISCOUNT
5%,2%,1%
30%,20%,10%
CREDIT TERMS
2/10, n/60
2/10,1/15,n/30
DATE PAID
January 1,2020
October 27,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P300,000 on account. The
merchandise is subject to a trade discount of 1%,2%,4% with credit terms of 2/10/EOM, n/30.
a)
b)
Prepare the entry to record purchase (ABC Company’s POV) of merchandise using each of the following methods.
i.
Gross method
ii.
Net method
Prepare the entry to record payment (ABC Company’s POV) of merchandise assuming merchandise is fully paid on March
10, 2019, using each of the following methods.
i)
Gross method
ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 4/EOM, n/60. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on July 13, 2019.
Prepare the entries (Seller’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) July 13,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET 15
PROBLEM 1
On September 1, 2019, ABC Company received nine months of rent in advance beginning on that date for a total amount of P81, 000.
ABC Company’s reporting period ends on November 30, 2019.
1) How much is the unearned revenue at the end of fiscal year 2019?
2) Prepare the adjusting entries on November 30,2019 assuming ABC company records advanced receipt of unearned revenue
using revenue method.
PROBLEM2
DEF Company had a beginning total assets of P650,000 and beginning total liabilities of P150,000. During 2019, the owner invested cash of
P150,000 and withdrew cash amounting to P460,000. Liabilities at the end of 2018 amounting to P100,000 were paid during 2019. DEF
incurred expenses of P300,000 resulting to an ending total assets and total liabilities of P900,000 and P550,000 respectively.
1) How much is the additional liabilities during 2019?
2) How much is the revenue earned during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
August 1, 2019
May 12, 2019
LIST PRICE
800,000
1,030,000
TRADE DISCOUNT
10%,20%,30%
4%,2%,1%
CREDIT TERMS
1/10/EOM, n/60
3/10,2/15,n/30
DATE PAID
September 11,2019
May 27,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 5%,2%,1% with credit terms of 4/EOM, n/60.
a)
b)
Prepare the entry to record purchase (ABC Company’s POV) of merchandise using each of the following methods.
i.
Gross method
ii.
Net method
Prepare the entry to record payment (ABC Company’s POV) of merchandise assuming merchandise is fully paid on February
28, 2019, using each of the following methods.
i)
Gross method
ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P500,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 2/10,1/15,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 24, 2019.
Prepare the entries (Buyer’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 24,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET 16
PROBLEM1
On October 1, 2019, ABC Company received nine months of rent in advance beginning on that date for a total amount of P81, 000. ABC
Company’s reporting period ends on November 30, 2019.
1) How much is the unearned revenue at the end of fiscal year 2019?
2) Prepare the adjusting entries on November 30,2019 assuming ABC company records advanced receipt of unearned revenue
using revenue method
PROBLEM2
ABC Company had a beginning total assets of P2,000,000 and beginning total liabilities of P550,000. During 2019, the owner invested cash
of P600,000 and withdrew cash amounting to P210,000. Additional liabilities during 2019 amounted to P700,000 while liabilities at the end of
2018 amounting to P400,000 were paid during 2019. ABC incurred expenses of P700,000 resulting to an ending total assets of P2,200,000.
a)
b)
How much is the net income (net loss) during 2019?
How much is the revenue earned during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
December 12, 2019
October 1, 2019
LIST PRICE
400,000
900,000
TRADE DISCOUNT
5%,2%,1%
25%,15%
CREDIT TERMS
4/EOM, n/60
2/10,1/15,n/30
DATE PAID
January 10,2020
October 11,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 10%,20%,30% with credit terms of 4/EOM, n/60.
a)
b)
Prepare the entry to record sale (DEF Company’s POV) of merchandise using each of the following methods.
i)
Gross method
ii)
Net method
Prepare the entry to record receipt of payment (DEF Company’s POV) of merchandise assuming payment was received on
February 20, 2019, using each of the following methods.
(i)
Gross method
(ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P500,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 2/10,1/15,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 25, 2019.
Prepare the entries (Buyer’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 25,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET 17
PROBLEM 1
Entity A has a total accounts receivable of P900,000 as of December 31, 2018. At the end of 2018, it was estimated that 94% of accounts
receivable is collectible. On December 31, 2019, the balance of accounts receivable is P1,550,000. At the end of 2019, it was estimated
that 5% of the outstanding accounts receivable is uncollectible.
1) How much is the uncollectible accounts expense during the period ended December 31, 2019?
2) Prepare the adjusting entry on December 31, 2019.
PROBLEM2
DEF Company had a beginning total assets of P5,000,000 and beginning total liabilities of P3,500,000. During 2019, the owner invested cash
of P1,000,000 and withdrew cash amounting to P500,000. Additional liabilities during 2019 amounted to P1,000,000. DEF incurred expenses of
P3,000,000 resulting to an ending total assets and liabilities of P6,000,000 and P2,500,000 respectively.
a)
b)
How much is the amount of liabilities paid during 2019?
How much is the revenue earned during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
March 24, 2019
October 1, 2019
LIST PRICE
400,000
9,000,000
TRADE DISCOUNT
25%,15%
10%,20%,30%
CREDIT TERMS
2/10,1/15,n/30
2/10/EOM, n/60
DATE PAID
April 8,2019
October 11,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 1%,2%,3% with credit terms of 2/10, n/60.
a)
b)
Prepare the entry to record sale (DEF Company’s POV) of merchandise using each of the following methods.
i)
Gross method
ii)
Net method
Prepare the entry to record receipt of payment (DEF Company’s POV) of merchandise assuming payment was received on
February 20, 2019, using each of the following methods.
(i)
Gross method
(ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 15%,5% with credit terms 2/10,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 24, 2019.
Prepare the entries (Seller’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 24,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET 18
PROBLEM 1
ABC Company collected P20,000 in interest during 2019. ABC Company showed P2,000 in interest receivable on its December 31, 2019
statement of financial position and P7,000 on December 31, 2018.
1)
2)
How much is the interest revenue reported on ABC’s statement of comprehensive income for 2019?
Prepare the adjusting entry on December 31, 2019.
PROBLEM2
DEF Company had beginning balance of total assets and liabilities of P9,650,000 and P5,550,000 respectively. During 2019, the owner
invested cash of P4,500,000 and withdrew cash amounting to P1,900,000. Additional liabilities during 2019 amounted to P5,000,000 while
liabilities at the end of 2018 amounting to P4,550,000 were paid during 2019. DEF had ending total assets of P10,000,000. DEF earned income
of P8,000,000 during the current year.
a)
b)
How much is the net income (net loss) during 2019?
How much is the amount of expenses incurred during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
March 14, 2019
May 29, 2019
LIST PRICE
4,000,000
8,000,000
TRADE DISCOUNT
10%,20%,30%
25%,15%
CREDIT TERMS
2/10,1/15,n/30
2/10, n/60
DATE PAID
March 20,2019
June 9,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P200,000 on account. The
merchandise is subject to a trade discount of 20%,10%,5%, with credit terms of 2/10/EOM, n/30.
a)
b)
Prepare the entry to record sale (DEF Company’s POV) of merchandise using each of the following methods.
i)
Gross method
ii)
Net method
Prepare the entry to record receipt of payment (DEF Company’s POV) of merchandise assuming payment was received on
February 20, 2019, using each of the following methods.
(i)
Gross method
(ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 20%,5% with credit terms 3/10,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 20, 2019.
Prepare the entries (Buyer’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 20,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET 19
PROBLEM 1
ABC Company received a 10% P2,000,000, one-year, notes receivable from a customer on November 30, 2019. Both the principal and
interest on the note are due on December 1,2020.
1)
2)
How much is the interest receivable on December 31, 2019?
Prepare the adjusting entry on December 31, 2019.
PROBLEM2
ENTITY A had beginning balance of total assets and liabilities of P800,000 and P200,000 respectively. During 2019, the owner invested cash
of P100,000 and withdrew cash amounting to P200,000. Additional liabilities during 2019 amounted to P250,000 while liabilities at the end of
2018 amounting to P50,000 were paid during 2019. ENTITY A had ending total assets of P800,000. During 2019, ENTITY A earned income of
P600,000.
a)
b)
How much is the net income (net loss) during 2019?
How much is the amount of expenses incurred during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
November 1, 2019
November 12, 2019
LIST PRICE
450,000
820,000
TRADE DISCOUNT
5%,2%,1%
30%,20%,10%
CREDIT TERMS
2/10, n/60
2/10,1/15,n/30
DATE PAID
December 1,2019
November 27,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P300,000 on account. The
merchandise is subject to a trade discount of 1%,2%,4% with credit terms of 2/10/EOM, n/30.
a)
b)
Prepare the entry to record sale (DEF Company’s POV) of merchandise using each of the following methods.
i)
Gross method
ii)
Net method
Prepare the entry to record receipt of payment (DEF Company’s POV) of merchandise assuming payment was received on
March 10, 2019, using each of the following methods.
(i)
Gross method
(ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 4/EOM, n/60. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on July 13, 2019.
Prepare the entries (Buyer’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) July 13,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET20
PROBLEM 1
A law firm began December with Office Supplies of P50,000. During the month, the firm purchased supplies of P20,000. At December 31,
supplies on hand totalled P33,000.
1) How much is the supplies expense on for the month of December?
2) Prepare the adjusting entry on December 31, 2019 using the Asset Method
PROBLEM2
ENTIY A had a beginning total assets of P3,700,000 and beginning total liabilities of P1,200,000. During 2019, the owner withdrew cash
amounting to P370,000. Additional liabilities during 2019 amounted to P600,000 while P800,000 liabilities at the end of 2018 were paid during
2019. ENTITY A earned income of P950,000 and incurred expenses of P650,000. At the end of 2019, ending total equity amounted to
P4,000,000.
a)
b)
What is the amount of investment by owner during 2019?
What is the ending balance of total assets?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
July 1, 2019
June 12, 2019
LIST PRICE
800,000
1,030,000
TRADE DISCOUNT
10%,20%,30%
4%,2%,1%
CREDIT TERMS
1/10/EOM, n/60
3/10,2/15,n/30
DATE PAID
August 11,2019
June 27,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 5%,2%,1% with credit terms of 4/EOM, n/60.
a)
b)
Prepare the entry to record sale (DEF Company’s POV) of merchandise using each of the following methods.
i)
Gross method
ii)
Net method
Prepare the entry to record receipt of payment (DEF Company’s POV) of merchandise assuming payment was received on
February 28, 2019, using each of the following methods.
(i)
Gross method
(ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P500,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 2/10,1/15,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 24, 2019.
Prepare the entries (Seller’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 24,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET 21
PROBLEM 1
DEF Company acquired an office equipment on August 1, 2019 for P2,000,000. The office equipment has estimated useful life of 8 years.
1) How much is the depreciation expense for the period ended December 31, 2019?
2) Prepare the adjusting entry on December 31, 2019.
PROBLEM2
DEF Company had a beginning total assets of P550,000 and beginning total liabilities of P50,000. During 2019, the owner invested cash of
P150,000 and withdrew cash amounting to P460,000. Liabilities at the end of 2018 amounting to P10,000 were paid during 2019. DEF incurred
expenses of P300,000 resulting to an ending total assets and total liabilities of P900,000 and P550,000 respectively.
1) How much is the additional liabilities during 2019?
2) How much is the revenue earned during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
May 14, 2019
July 29, 2019
LIST PRICE
4,000,000
8,000,000
TRADE DISCOUNT
10%,20%,30%
25%,15%
CREDIT TERMS
2/10,1/15,n/30
2/10, n/60
DATE PAID
May 20,2019
August 9,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P300,000 on account. The
merchandise is subject to a trade discount of 1%,2%,4% with credit terms of 2/10/EOM, n/30.
a)
b)
Prepare the entry to record purchase (ABC Company’s POV) of merchandise using each of the following methods.
i.
Gross method
ii.
Net method
Prepare the entry to record payment (ABC Company’s POV) of merchandise assuming merchandise is fully paid on March
10, 2019, using each of the following methods.
i)
Gross method
ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P500,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 2/10,1/15,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 24, 2019.
Prepare the entries (Buyer’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 24,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET 22
PROBLEM 1
ABC Company received a 10% P3,000,000, one-year, notes receivable from a customer on November 30, 2019. Both the principal and
interest on the note are due on December 1,2020.
1)
2)
How much is the interest receivable on December 31, 2019?
Prepare the adjusting entry on December 31, 2019.
PROBLEM2
ENTIY A had a beginning total assets of P700,000 and beginning total liabilities of P200,000. During 2019, the owner withdrew cash
amounting to P20,000. Additional liabilities during 2019 amounted to P100,000 while P10,000 liabilities at the end of 2018 were paid during
2019. ENTITY A earned income of P200,000 and incurred expenses of P250,000. At the end of 2019, ending total equity amounted to
P500,000.
a)
b)
What is the amount of investment by owner during 2019?
What is the ending balance of total assets?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
December 1, 2019
October 12, 2019
LIST PRICE
450,000
820,000
TRADE DISCOUNT
5%,2%,1%
30%,20%,10%
CREDIT TERMS
2/10, n/60
2/10,1/15,n/30
DATE PAID
January 1,2020
October 27,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 5%,2%,1% with credit terms of 4/EOM, n/60.
a)
b)
Prepare the entry to record purchase (ABC Company’s POV) of merchandise using each of the following methods.
i.
Gross method
ii.
Net method
Prepare the entry to record payment (ABC Company’s POV) of merchandise assuming merchandise is fully paid on February
28, 2019, using each of the following methods.
i)
Gross method
ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P500,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 2/10,1/15,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 25, 2019.
Prepare the entries (Buyer’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 25,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET23
PROBLEM 1
ABC Company has a total accounts receivable of P3,000,000 as of December 31, 2018. At the end of 2018, it was estimated that 95% of
accounts receivable is collectible. On December 31, 2019, the balance of accounts receivable is P5,550,000. At the end of 2019, it was
estimated that 6% of the outstanding accounts receivable is uncollectible.
1) How much is the uncollectible accounts expense during the period ended December 31, 2019?
2) Prepare the adjusting entry on December 31, 2018.
PROBLEM2
ENTIY A had a beginning total assets of P3,500,000 and beginning total liabilities of P1,000,000. During 2019, the owner invested cash
amounting to P200,000. Additional liabilities during 2019 amounted to P600,000 while P800,000 liabilities at the end of 2018 were paid during
2019. ENTITY A earned income of P800,000 and incurred expenses of P750,000. At the end of 2019, ending total equity amounted to
P2,000,000.
a)
b)
What is the amount of permanent withdrawal by owner during 2019?
What is the ending balance of total assets?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
August 1, 2019
May 12, 2019
LIST PRICE
800,000
1,030,000
TRADE DISCOUNT
10%,20%,30%
4%,2%,1%
CREDIT TERMS
1/10/EOM, n/60
3/10,2/15,n/30
DATE PAID
September 11,2019
May 27,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 10%,20%,30% with credit terms of 4/EOM, n/60.
a)
b)
Prepare the entry to record sale (DEF Company’s POV) of merchandise using each of the following methods.
i)
Gross method
ii)
Net method
Prepare the entry to record receipt of payment (DEF Company’s POV) of merchandise assuming payment was received on
February 20, 2019, using each of the following methods.
(i)
Gross method
(ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 15%,5% with credit terms 2/10,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 24, 2019.
Prepare the entries (Seller’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 24,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET24
PROBLEM 1
ABC Company collected P100,000 in interest during 2019. ABC Company showed P70,000 in interest receivable on its December 31, 2019
statement of financial position and P10,000 on December 31, 2018.
1)
2)
How much is the interest revenue reported on ABC’s statement of comprehensive income for 2019?
Prepare the adjusting entry on December 31, 2019.
PROBLEM2
DEF Company had a beginning total assets of P650,000 and beginning total liabilities of P150,000. During 2019, the owner invested cash of
P150,000 and withdrew cash amounting to P460,000. Liabilities at the end of 2018 amounting to P100,000 were paid during 2019. DEF
incurred expenses of P300,000 resulting to an ending total assets and total liabilities of P900,000 and P550,000 respectively.
1) How much is the additional liabilities during 2019?
2) How much is the revenue earned during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
December 12, 2019
October 1, 2019
LIST PRICE
400,000
900,000
TRADE DISCOUNT
5%,2%,1%
25%,15%
CREDIT TERMS
4/EOM, n/60
2/10,1/15,n/30
DATE PAID
January 10,2020
October 11,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 1%,2%,3% with credit terms of 2/10, n/60.
a)
b)
Prepare the entry to record sale (DEF Company’s POV) of merchandise using each of the following methods.
i)
Gross method
ii)
Net method
Prepare the entry to record receipt of payment (DEF Company’s POV) of merchandise assuming payment was received on
February 20, 2019, using each of the following methods.
(i)
Gross method
(ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 20%,5% with credit terms 3/10,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 20, 2019.
Prepare the entries (Buyer’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 20,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET25
PROBLEM 1
On September 1, 2019, ABC Company received nine months of rent in advance beginning on that date for a total amount of P81, 000.
ABC Company’s reporting period ends on November 30, 2019.
1) How much is the unearned revenue at the end of fiscal year 2019?
2) Prepare the adjusting entries on November 30,2019 assuming ABC company records advanced receipt of unearned revenue
using liability method.
PROBLEM2
ABC Company had a beginning total assets of P2,000,000 and beginning total liabilities of P550,000. During 2019, the owner invested cash
of P600,000 and withdrew cash amounting to P210,000. Additional liabilities during 2019 amounted to P700,000 while liabilities at the end of
2018 amounting to P400,000 were paid during 2019. ABC incurred expenses of P700,000 resulting to an ending total assets of P2,200,000.
a)
b)
How much is the net income (net loss) during 2019?
How much is the revenue earned during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
March 24, 2019
October 1, 2019
LIST PRICE
400,000
9,000,000
TRADE DISCOUNT
25%,15%
10%,20%,30%
CREDIT TERMS
2/10,1/15,n/30
2/10/EOM, n/60
DATE PAID
April 8,2019
October 11,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P200,000 on account. The
merchandise is subject to a trade discount of 20%,10%,5%, with credit terms of 2/10/EOM, n/30.
a)
b)
Prepare the entry to record sale (DEF Company’s POV) of merchandise using each of the following methods.
i)
Gross method
ii)
Net method
Prepare the entry to record receipt of payment (DEF Company’s POV) of merchandise assuming payment was received on
February 20, 2019, using each of the following methods.
(i)
Gross method
(ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 4/EOM, n/60. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on July 13, 2019.
Prepare the entries (Buyer’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) July 13,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET26
PROBLEM1
On October 1, 2019, ABC Company received nine months of rent in advance beginning on that date for a total amount of P81, 000. ABC
Company’s reporting period ends on November 30, 2019.
1) How much is the unearned revenue at the end of fiscal year 2019?
2) Prepare the adjusting entries on November 30,2019 assuming ABC company records advanced receipt of unearned revenue
using liability method.
PROBLEM2
DEF Company had a beginning total assets of P5,000,000 and beginning total liabilities of P3,500,000. During 2019, the owner invested cash
of P1,000,000 and withdrew cash amounting to P500,000. Additional liabilities during 2019 amounted to P1,000,000. DEF incurred expenses of
P3,000,000 resulting to an ending total assets and liabilities of P6,000,000 and P2,500,000 respectively.
a)
b)
How much is the amount of liabilities paid during 2019?
How much is the revenue earned during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
March 14, 2019
May 29, 2019
LIST PRICE
4,000,000
8,000,000
TRADE DISCOUNT
10%,20%,30%
25%,15%
CREDIT TERMS
2/10,1/15,n/30
2/10, n/60
DATE PAID
March 20,2019
June 9,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P300,000 on account. The
merchandise is subject to a trade discount of 1%,2%,4% with credit terms of 2/10/EOM, n/30.
a)
b)
Prepare the entry to record sale (DEF Company’s POV) of merchandise using each of the following methods.
i)
Gross method
ii)
Net method
Prepare the entry to record receipt of payment (DEF Company’s POV) of merchandise assuming payment was received on
March 10, 2019, using each of the following methods.
(i)
Gross method
(ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P500,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 2/10,1/15,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 24, 2019.
Prepare the entries (Seller’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 24,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET27
PROBLEM 1
Entity A has a total accounts receivable of P900,000 as of December 31, 2018. At the end of 2018, it was estimated that 94% of accounts
receivable is collectible. On December 31, 2019, the balance of accounts receivable is P1,550,000. At the end of 2019, it was estimated
that 5% of the outstanding accounts receivable is uncollectible.
1) How much is the uncollectible accounts expense during the period ended December 31, 2019?
2) Prepare the adjusting entry on December 31, 2019.
PROBLEM2
DEF Company had beginning balance of total assets and liabilities of P9,650,000 and P5,550,000 respectively. During 2019, the owner
invested cash of P4,500,000 and withdrew cash amounting to P1,900,000. Additional liabilities during 2019 amounted to P5,000,000 while
liabilities at the end of 2018 amounting to P4,550,000 were paid during 2019. DEF had ending total assets of P10,000,000. DEF earned income
of P8,000,000 during the current year.
a)
b)
How much is the net income (net loss) during 2019?
How much is the amount of expenses incurred during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
November 1, 2019
November 12, 2019
LIST PRICE
450,000
820,000
TRADE DISCOUNT
5%,2%,1%
30%,20%,10%
CREDIT TERMS
2/10, n/60
2/10,1/15,n/30
DATE PAID
December 1,2019
November 27,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 5%,2%,1% with credit terms of 4/EOM, n/60.
a)
b)
Prepare the entry to record sale (DEF Company’s POV) of merchandise using each of the following methods.
i)
Gross method
ii)
Net method
Prepare the entry to record receipt of payment (DEF Company’s POV) of merchandise assuming payment was received on
February 28, 2019, using each of the following methods.
(i)
Gross method
(ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P500,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 2/10,1/15,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 25, 2019.
Prepare the entries (Seller’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 25,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET28
PROBLEM 1
ABC Company collected P20,000 in interest during 2019. ABC Company showed P2,000 in interest receivable on its December 31, 2019
statement of financial position and P7,000 on December 31, 2018.
1)
2)
How much is the interest revenue reported on ABC’s statement of comprehensive income for 2019?
Prepare the adjusting entry on December 31, 2019.
PROBLEM2
ENTITY A had beginning balance of total assets and liabilities of P800,000 and P200,000 respectively. During 2019, the owner invested cash
of P100,000 and withdrew cash amounting to P200,000. Additional liabilities during 2019 amounted to P250,000 while liabilities at the end of
2018 amounting to P50,000 were paid during 2019. ENTITY A had ending total assets of P800,000. During 2019, ENTITY A earned income of
P600,000.
a)
b)
How much is the net income (net loss) during 2019?
How much is the amount of expenses incurred during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
July 1, 2019
June 12, 2019
LIST PRICE
800,000
1,030,000
TRADE DISCOUNT
10%,20%,30%
4%,2%,1%
CREDIT TERMS
1/10/EOM, n/60
3/10,2/15,n/30
DATE PAID
August 11,2019
June 27,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 10%,20%,30% with credit terms of 4/EOM, n/60.
a)
b)
Prepare the entry to record purchase (ABC Company’s POV) of merchandise using each of the following methods.
i.
Gross method
ii.
Net method
Prepare the entry to record payment (ABC Company’s POV) of merchandise assuming merchandise is fully paid on February
20, 2019, using each of the following methods.
i)
Gross method
ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 15%,5% with credit terms 2/10,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 24, 2019.
Prepare the entries (Buyer’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 24,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET29
PROBLEM 1
ABC Company received a 10% P2,000,000, one-year, notes receivable from a customer on November 30, 2019. Both the principal and
interest on the note are due on December 1,2020.
1)
2)
How much is the interest receivable on December 31, 2019?
Prepare the adjusting entry on December 31, 2019.
PROBLEM2
ENTIY A had a beginning total assets of P3,700,000 and beginning total liabilities of P1,200,000. During 2019, the owner withdrew cash
amounting to P370,000. Additional liabilities during 2019 amounted to P600,000 while P800,000 liabilities at the end of 2018 were paid during
2019. ENTITY A earned income of P950,000 and incurred expenses of P650,000. At the end of 2019, ending total equity amounted to
P4,000,000.
a)
b)
What is the amount of investment by owner during 2019?
What is the ending balance of total assets?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
July 12, 2019
January 1, 2019
LIST PRICE
400,000
900,000
TRADE DISCOUNT
5%,2%,1%
25%,15%
CREDIT TERMS
4/EOM, n/60
2/10,1/15,n/30
DATE PAID
August 10,2019
January 11,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 1%,2%,3% with credit terms of 2/10, n/60.
a)
b)
Prepare the entry to record purchase (ABC Company’s POV) of merchandise using each of the following methods.
i.
Gross method
ii.
Net method
Prepare the entry to record payment (ABC Company’s POV) of merchandise assuming merchandise is fully paid on February
20, 2019, using each of the following methods.
i)
Gross method
ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 20%,5% with credit terms 3/10,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 20, 2019.
Prepare the entries (Seller’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 20,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET30
PROBLEM 1
A law firm began December with Office Supplies of P50,000. During the month, the firm purchased supplies of P20,000. At December 31,
supplies on hand totaled P33,000.
1) How much is the supplies expense on for the month of December?
2) Prepare the adjusting entry on December 31, 2019 using the Expense Method.
PROBLEM2
ENTIY A had a beginning total assets of P3,500,000 and beginning total liabilities of P1,000,000. During 2019, the owner invested cash
amounting to P200,000. Additional liabilities during 2019 amounted to P600,000 while P800,000 liabilities at the end of 2018 were paid during
2019. ENTITY A earned income of P700,000 and incurred expenses of P750,000. At the end of 2019, ending total equity amounted to
P2,000,000.
a)
b)
What is the amount of permanent withdrawal by owner during 2019?
What is the ending balance of total assets?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
May 24, 2019
September 2, 2019
LIST PRICE
400,000
9,000,000
TRADE DISCOUNT
25%,15%
10%,20%,30%
CREDIT TERMS
2/10,1/15,n/30
2/10/EOM, n/60
DATE PAID
June 8,2019
September 11,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P200,000 on account. The
merchandise is subject to a trade discount of 20%,10%,5%, with credit terms of 2/10/EOM, n/30.
a)
b)
Prepare the entry to record purchase (ABC Company’s POV) of merchandise using each of the following methods.
i.
Gross method
ii.
Net method
Prepare the entry to record payment (ABC Company’s POV) of merchandise assuming merchandise is fully paid on February
20, 2019, using each of the following methods.
i)
Gross method
ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 20%,5% with credit terms 3/10,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 20, 2019.
Prepare the entries (Seller’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 20,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET31
PROBLEM 1
DEF Company acquired an office equipment on August 1, 2019 for P2,000,000. The office equipment has estimated useful life of 8 years.
1) How much is the depreciation expense for the period ended December 31, 2019?
2) Prepare the adjusting entry on December 31, 2019.
PROBLEM2
ENTIY A had a beginning total assets of P700,000 and beginning total liabilities of P200,000. During 2019, the owner withdrew cash
amounting to P20,000. Additional liabilities during 2019 amounted to P100,000 while P10,000 liabilities at the end of 2018 were paid during
2019. ENTITY A earned income of P200,000 and incurred expenses of P250,000. At the end of 2019, ending total equity amounted to
P500,000.
a)
b)
What is the amount of investment by owner during 2019?
What is the ending balance of total assets?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
August 1, 2019
May 12, 2019
LIST PRICE
800,000
1,030,000
TRADE DISCOUNT
10%,20%,30%
4%,2%,1%
CREDIT TERMS
1/10/EOM, n/60
3/10,2/15,n/30
DATE PAID
September 11,2019
May 27,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 1%,2%,3% with credit terms of 2/10, n/60.
a)
b)
Prepare the entry to record sale (DEF Company’s POV) of merchandise using each of the following methods.
i)
Gross method
ii)
Net method
Prepare the entry to record receipt of payment (DEF Company’s POV) of merchandise assuming payment was received on
February 20, 2019, using each of the following methods.
(i)
Gross method
(ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 4/EOM, n/60. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on July 13, 2019.
Prepare the entries (Buyer’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) July 13,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET32
PROBLEM 1
ABC Company received a 10% P3,000,000, one-year, notes receivable from a customer on November 30, 2019. Both the principal and
interest on the note are due on December 1,2020.
1)
2)
How much is the interest receivable on December 31, 2019?
Prepare the adjusting entry on December 31, 2019.
PROBLEM2
ENTIY A had a beginning total assets of P3,500,000 and beginning total liabilities of P1,000,000. During 2019, the owner invested cash
amounting to P200,000. Additional liabilities during 2019 amounted to P600,000 while P800,000 liabilities at the end of 2018 were paid during
2019. ENTITY A earned income of P800,000 and incurred expenses of P750,000. At the end of 2019, ending total equity amounted to
P2,000,000.
a)
b)
What is the amount of permanent withdrawal by owner during 2019?
What is the ending balance of total assets?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
December 12, 2019
October 1, 2019
LIST PRICE
400,000
900,000
TRADE DISCOUNT
5%,2%,1%
25%,15%
CREDIT TERMS
4/EOM, n/60
2/10,1/15,n/30
DATE PAID
January 10,2020
October 11,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P200,000 on account. The
merchandise is subject to a trade discount of 20%,10%,5%, with credit terms of 2/10/EOM, n/30.
a)
b)
Prepare the entry to record sale (DEF Company’s POV) of merchandise using each of the following methods.
i)
Gross method
ii)
Net method
Prepare the entry to record receipt of payment (DEF Company’s POV) of merchandise assuming payment was received on
February 20, 2019, using each of the following methods.
(i)
Gross method
(ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P500,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 2/10,1/15,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 24, 2019.
Prepare the entries (Seller’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 24,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET33
PROBLEM 1
ABC Company has a total accounts receivable of P3,000,000 as of December 31, 2018. At the end of 2018, it was estimated that 95% of
accounts receivable is collectible. On December 31, 2019, the balance of accounts receivable is P5,550,000. At the end of 2019, it was
estimated that 6% of the outstanding accounts receivable is uncollectible.
1) How much is the uncollectible accounts expense during the period ended December 31, 2019?
2) Prepare the adjusting entry on December 31, 2019.
PROBLEM2
DEF Company had a beginning total assets of P650,000 and beginning total liabilities of P150,000. During 2019, the owner invested cash of
P150,000 and withdrew cash amounting to P460,000. Liabilities at the end of 2018 amounting to P100,000 were paid during 2019. DEF
incurred expenses of P300,000 resulting to an ending total assets and total liabilities of P900,000 and P550,000 respectively.
1) How much is the additional liabilities during 2019?
2) How much is the revenue earned during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
March 24, 2019
October 1, 2019
LIST PRICE
400,000
9,000,000
TRADE DISCOUNT
25%,15%
10%,20%,30%
CREDIT TERMS
2/10,1/15,n/30
2/10/EOM, n/60
DATE PAID
April 8,2019
October 11,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P300,000 on account. The
merchandise is subject to a trade discount of 1%,2%,4% with credit terms of 2/10/EOM, n/30.
a)
b)
Prepare the entry to record sale (DEF Company’s POV) of merchandise using each of the following methods.
i)
Gross method
ii)
Net method
Prepare the entry to record receipt of payment (DEF Company’s POV) of merchandise assuming payment was received on
March 10, 2019, using each of the following methods.
(i)
Gross method
(ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P500,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 25%,15% with credit terms 2/10,1/15,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 25, 2019.
Prepare the entries (Seller’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 25,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET34
PROBLEM 1
ABC Company collected P100,000 in interest during 2019. ABC Company showed P70,000 in interest receivable on its December 31, 2019
statement of financial position and P10,000 on December 31, 2018.
1)
2)
How much is the interest revenue reported on ABC’s statement of comprehensive income for 2019?
Prepare the adjusting entry on December 31, 2019.
PROBLEM2
ABC Company had a beginning total assets of P2,000,000 and beginning total liabilities of P550,000. During 2019, the owner invested cash
of P600,000 and withdrew cash amounting to P210,000. Additional liabilities during 2019 amounted to P700,000 while liabilities at the end of
2018 amounting to P400,000 were paid during 2019. ABC incurred expenses of P700,000 resulting to an ending total assets of P2,200,000.
a)
b)
How much is the net income (net loss) during 2019?
How much is the revenue earned during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
March 14, 2019
May 29, 2019
LIST PRICE
4,000,000
8,000,000
TRADE DISCOUNT
10%,20%,30%
25%,15%
CREDIT TERMS
2/10,1/15,n/30
2/10, n/60
DATE PAID
March 20,2019
June 9,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 5%,2%,1% with credit terms of 4/EOM, n/60.
a)
b)
Prepare the entry to record sale (DEF Company’s POV) of merchandise using each of the following methods.
i)
Gross method
ii)
Net method
Prepare the entry to record receipt of payment (DEF Company’s POV) of merchandise assuming payment was received on
February 28, 2019, using each of the following methods.
(i)
Gross method
(ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 15%,5% with credit terms 2/10,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 24, 2019.
Prepare the entries (Buyer’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 24,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET35
PROBLEM 1
On September 1, 2019, ABC Company received nine months of rent in advance beginning on that date for a total amount of P81, 000.
ABC Company’s reporting period ends on November 30, 2019.
1) How much is the unearned revenue at the end of fiscal year 2019?
2) Prepare the adjusting entries on November 30,2019 assuming ABC company records advanced receipt of unearned revenue
using revenue method.
PROBLEM2
DEF Company had a beginning total assets of P5,000,000 and beginning total liabilities of P3,500,000. During 2019, the owner invested cash
of P1,000,000 and withdrew cash amounting to P500,000. Additional liabilities during 2019 amounted to P1,000,000. DEF incurred expenses of
P3,000,000 resulting to an ending total assets and liabilities of P6,000,000 and P2,500,000 respectively.
a)
b)
How much is the amount of liabilities paid during 2019?
How much is the revenue earned during 2019?
PROBLEM3
Determine the (a) Invoice Price; (b) Amount of trade discount; (c) Amount of cash discount; (d) Last date of discount period; (e) Amount
paid in full settlement of the account for each of the following invoices.
1
2
INVOICE DATE
November 1, 2019
November 12, 2019
LIST PRICE
450,000
820,000
TRADE DISCOUNT
5%,2%,1%
30%,20%,10%
CREDIT TERMS
2/10, n/60
2/10,1/15,n/30
DATE PAID
December 1,2019
November 27,2019
PROBLEM4
On February12, 2019, ABC Company purchased merchandise from DEF Company with a list price of P1,900,000 on account. The
merchandise is subject to a trade discount of 10%,20%,30% with credit terms of 4/EOM, n/60.
a)
b)
Prepare the entry to record purchase (ABC Company’s POV) of merchandise using each of the following methods.
i.
Gross method
ii.
Net method
Prepare the entry to record payment (ABC Company’s POV) of merchandise assuming merchandise is fully paid on February
20, 2019, using each of the following methods.
i)
Gross method
ii)
Net method
PROBLEM5
On June 13, 2019, Lolo Company purchased merchandise worth P300,000 on account from Lola Company. Transportation costs amounted
to P30,000. The merchandise is subject to a trade discount of 20%,5% with credit terms 3/10,n/30. The merchandise, together with the
invoice was received by Lolo Company on June 15, 2019. Lolo Company paid in full on June 20, 2019.
Prepare the entries (Seller’s POV) on (a) June 13, 2019; (b) June 15,2019; and (c) June 20,2019 assuming the following shipment
terms:
i)
FOB Shipping point, freight collect
ii) FOB Shipping point, freight prepaid
iii) FOB Destination, freight prepaid
iv) FOB Destination, freight collect
SET36
THEORIES. Arrange the letters.
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)
13)
14)
15)
16)
17)
18)
19)
20)
21)
22)
23)
24)
25)
It includes papers, pens, folders, staplers, pencils, clips, etc. which are used by the business (two words) (FCLIPSEFIESOUP)
An accounting period of less than a year. (Two words) (RIPERINMODETI)
A business that is owned by one person. (Two words) (PIRTPRROOHSPLEIEO)
It includes computers, air-conditioning units, electric fans, freezers, refrigerators, etc. that are used by the business enterprise.
(two words) (SQETTOUMIPNREE)
It refers to the postponement of the recognition of revenue which the company has received or collected in advance and
the postponement of the recognition of expense which has been paid in advance. (One word) (FREELARDS)
The division of time in the life of the business. (Two words) (COICAPRUNTONEIGD)
The kind of business that buys goods or commodities then sells the same at a profit. (Two words) (HMSURCEBASNEIGSINSIND)
The user of financial information that decides whether they should buy, hold or sell their shares of stocks. (one word)
(IESSRTNOV)
These are claims against debtors or customers arising from services rendered on account and sale of merchandise on
account. (two words) (CEIRAEBCEVCOLAUNTS)
It is a group of accounts that provides the summary of transactions for an accounting period. (one word) (DGRLEE)
This phase of accounting cycle starts with the preparation of the trial balance up to the post-closing trial balance. (One
word) (MUSGANRIZMI)
It is the evidence of transactions that describes the essential facts of the transaction. (Two words) (OROCEETUMDCSUN)
In accounting, an economic entity may be defined as ______________(two words) (SSSSTINEENPUEBRRIE)
These are structured representation of the transactions undertaken and the financial position of the enterprise during a
particular reporting period. (two words) (ILNITSANANFATTEECMS)
A clearing account used only at the end of the accounting period to summarize revenues and expenses during the period.
(Two words) (OMMNSUIMYRACE)
This are amounts due to creditors evidenced by a written promise to pay. (two words) (LENTEPOSABYA)
An organization in which basic resources are assembled and processed to provide goods or services to customers or clients.
(One word) (SUESINBS)
The end product of the accounting process. (two words) (IEANLNFTTMECITASAN)
Amount due on borrowed funds as a result of the time value of money. (two words) (RIEEABNASTTEPYL)
The financial report that shows the result of business operation for a given period. (two words) (NAMOETTECTMINES)
Document prepared by the seller upon sale of merchandise. (two words) (VAICSSLINEOE)
An event which has effects on the resources of the firm and on the sources of the firm’s assets. (two words)
(IUSERNTACBSNTNSSAIO)
It is a summary listing of the account titles and the balance of each account. (Two words) (BANRILCATLAE)
The process wherein the amounts of the debit and credit columns of the accounts are totalled and the difference between
the amount of debit and credit totals is determined is called____________. (two words) (GPOONNCTILEFI)
Freight-in is added to purchases to arrive at the total cost of goods purchased. Thus, it is an example of___________. (Two
words) (CAUJTTNADCNCUO)